ISG Provider Lens Study: Edge Computing Booms
The American consulting and market research firm Information Services Group (ISG), which acquired Saugatuck Technology and Experton Group AG in recent years, recently published a comparative study on special IoT topics and IoT service areas with its ISG provider Lens Study.
The ISG Provider Lens Study aims to provide a basis for comparing the offerings of different providers and service providers in their respective market environments through its analysis of the offerings of different providers and service providers – but is also the basis for forecasts and trends. The IoT study examined more than 70 providers in nine submarkets.
Edge Computing is booming
ISG concludes that one of the fastest growing IoT market segments is Edge Computing. The analysts assume that this market will literally explode in the short and medium term with annual growth averaging more than 30 percent – especially since the strong growth of data processing devices and sensors makes on-site data storage – in the form of edge computing – a must.
This is the only way to cushion the increasingly critical load on central infrastructures and data streams.
ISG also believes that the upcoming 5G mobile radio standard will soon be of relevance, as it can bring higher performance for the Internet of Things. However, ISG neglects in this forecast that not even 4G has been developed nationwide in Germany and does not take into account the fact that 5G transmitters only have a range of a few hundred meters.
A relief of the IoT by 5G is actually to be expected in the foreseeable future at most in conurbations – if at all; the air taxi sends its greetings. Satellite networks modelled on the pilot project of Fraunhofer IIS and Hiber appear to have a more promising future.
The growth forecast for Edge Computing therefore seems very plausible, especially in this context. ISG has five leading suppliers in this segment: Atos, CANCOM, DXC Technology, Fujitsu and FORCAM.
In addition, ISG has analyzed seven further submarkets in the Provider Lens Study:
IoT Platforms, Industrial IoT Platforms, IoT Starter Kits and the consulting and integration providers for Connected Car Services, Building Automation, Logistics and Retail.
Building Automation (Consulting & Integration)
According to ISG, the market for commercial building automation has “developed into a battlefield for numerous suppliers” coming from different industries.
IoT solutions in this market no longer offer only individual functions such as heating, ventilation and air conditioning systems. Rather, building managers today expect integrated offerings that also include lighting control, locking systems, garages or elevator operation. This is why IoT providers are increasingly acting as integrators – and working together with specialist companies.
ISG considers the consolidation in the IoT platform market to be already very advanced. The leading platforms therefore have a robust technology base. In addition, they make it easy for partners to integrate new applications and services. These partners, in turn, focus primarily on diversifying and scaling their offerings.
Industrial IoT platforms
With the IoT platforms, especially for the manufacturing industry, the focus is on the automation of processes. For this purpose, manufacturing companies should above all have connected data sources with each other, for example in SAP and MES systems. The number of industrial IoT platforms available on the market has recently increased further. IoT solutions are therefore primarily used for the optimization of supply chains and the tracking of production goods.
IoT Starter Kits
The business customer market for turnkey IoT starter solutions continues to be dominated by only a few providers. Although there is an almost unmanageable number of IoT Starter Kits for technical programmers, ISG believes that they are hardly suitable for business customers who want to implement entire IoT scenarios. The leading providers should have to offer solutions that can be implemented without major integration effort and are available at a fixed price.
Connected Car Services (Consulting & Integration)
The market for Connected Car scenarios is set to undergo fundamental change. While individual solutions, such as car maintenance, infotainment systems or automated parking, have been the main focus until now, 2019 will be on integrating these scenarios. ISG predicts that suppliers who can offer such integrated solutions will be ahead of the market.
Logistics (Consulting & Integration)
In the logistics industry, ISG has seen a shift from goods tracking to vehicle automation. Today, IoT solutions for logistics go beyond mere tracking, tracing and controlling to include complete fleet management for ships, trucks and trains.
Previous future scenarios such as completely automated vehicles would now be faced with pilot use in real environments. Leading suppliers also integrated blockchain technology for tracking and tracing goods.
Trade (Consulting & Integration)
Against the backdrop of wafer-thin profit margins, the ISG Provider Lens Study also suggests that retailers will continue to face the challenge of improving customer loyalty and experience. ISG believes in the future of rather dubious IoT solutions such as “smart shelves” connected to supply chains, or “beacon” technology for customer navigation in stores – or robots. According to ISG, the first retailers are testing robots for replenishing shelves.
For more information on the study, please visit the URL below: